Nexentis Technologies Inc. (NASDAQ:NXTS) saw its stock rise 10% on Monday after the company disclosed a partial monetization of its stake in the Melz solar project in Germany. The transaction, formalized through an Addendum to the Loan and Partnership Agreement with Solterra Renewable Energy Ltd. and other lenders, assigns a total project valuation of $14.5 million.
The firm, which operates as a drug discovery company while also holding investments in solar energy assets, will receive several cash items under the Addendum. Nexentis is due an early repayment on its loan portion of approximately $147,000, inclusive of accrued interest. In addition, the company will receive $98,000 from the sale of 10% of its profit rights - a slice that represents 2.5% of the project’s profits - and a further $22,000 as an option fee tied to the right to acquire the remaining profit rights at Ready-to-Build status.
That option to purchase the rest of the profit rights will be exercisable based on an independent Big 4 valuation, per the Addendum. The document follows a separate share purchase agreement in which Solterra and its assets are being sold to Sunflower Sustainable Investments Ltd., a transaction that has led Solterra to make early partial loan repayments.
Financing role and project commitments
The lender group backing Melz committed roughly $2.95 million in total to push the project toward Ready-to-Build. Nexentis is the majority participant among those lenders, accounting for about $2.18 million of that commitment. The Melz project's stated capacity sits in a narrow band of approximately 111-115 MWp and remains in the development phase.
The Addendum’s valuation implies a per-megawatt figure of $120,000, given the $14.5 million project valuation applied to the 111-115 MWp capacity range.
Market reaction and context
Shares reacted positively following the disclosure of monetization proceeds and the structured repayments. The package of early repayment, sale proceeds and an option fee provides immediate cash inflows tied to the Melz asset while preserving a pathway to reacquire additional profit rights at a later stage linked to a Big 4 valuation.